The Global Economy; Perspective of Bangladesh
The global economy is based on economies of all of the world's countries, national economies, also seen as the economy of global society and national economies – as economies of local societies, making the global one. Today, the Worlds’ economy is not only based on the agriculture sectors but also on the other sectors like industrial sectors, arm forces, and natural resources etc. However, the conflict between the countries, technological capability, and geographical position of the countries make it even tougher to enter into the global market or open market. The developing countries like Bangladesh, with less technological support, low GDP rate, high birth rate face a lot of difficulties compete with those technologically developed countries. In the time of globalization the markets are open, and all the worlds’ population is the customer. For that reason, the more technologically developed business institutions, the more access towards the mass customer. Every business institutions need to get hooked into the global electronic grid (i. e. internet, web pages, ecommerce, etc.), as much of the worlds’ commerce and economic activity among developed countries is through these electronic forms. However, the free trade enlarges the opportunities for international trade; it also increases the threat of collapse for smaller companies that cannot compete globally.
Bangladesh is an agricultural country, with some three-fifths of the population engaged in farming [01]. The principal sources of foreign exchange are jute and tea. There are some other important agricultural products which are wheat, pulses, and sweet potatoes, oil seeds of various kinds, sugarcane, tobacco, and fruits such as bananas, mangoes, and pineapples. The economy of Bangladesh is a rapidly developing market-based economy [03]. Remittances from Bangladeshis working overseas, mainly in the Middle East, are the major source of foreign exchange earnings; exports of garments and textiles are the other main sources of foreign exchange earnings [02]. However, the ship building industries and cane cultivation is going to be a major force of growth.
The global economy or the open market hits the economy of Bangladesh in both senses. Firstly, job opportunities, especially for women, have been created by the country's garment industries. The garment industries are playing very important role in the women employment, job opportunities, and to increase the foreign remittance of the country because the global open market allows the garment industries to compete in the world market with the low cost labor. The domestic firms in Bangladesh are not enough efficient in production and not capable of competing in global level. The history of the firms in business are very short as a result they find a little scope of using economies of scale and finding the experience curve effect. Global business with superior technology and long term experience entering into the market and boosting sales leaving narrow market space for the domestic firms to fight for survival. The firms are not being able to survive in the domestic market let alone expand their business into foreign market. But if the policy makers could establish a good business environment and provide adequate support to the domestic firms they could use the advantage of home field and attract the niche markets in the globe using the competitive advantages. To achieve the full advantages of global economy Bangladesh has to improve technical know-how and provide adequate knowledge to the people running business. We need to have change in our education systems so that we will be able to create some knowledgeable business people. Loan can be provided to the entrepreneurs at low interest rates.
Bangladesh is an agricultural country, with some three-fifths of the population engaged in farming [01]. The principal sources of foreign exchange are jute and tea. There are some other important agricultural products which are wheat, pulses, and sweet potatoes, oil seeds of various kinds, sugarcane, tobacco, and fruits such as bananas, mangoes, and pineapples. The economy of Bangladesh is a rapidly developing market-based economy [03]. Remittances from Bangladeshis working overseas, mainly in the Middle East, are the major source of foreign exchange earnings; exports of garments and textiles are the other main sources of foreign exchange earnings [02]. However, the ship building industries and cane cultivation is going to be a major force of growth.
The global economy or the open market hits the economy of Bangladesh in both senses. Firstly, job opportunities, especially for women, have been created by the country's garment industries. The garment industries are playing very important role in the women employment, job opportunities, and to increase the foreign remittance of the country because the global open market allows the garment industries to compete in the world market with the low cost labor. The domestic firms in Bangladesh are not enough efficient in production and not capable of competing in global level. The history of the firms in business are very short as a result they find a little scope of using economies of scale and finding the experience curve effect. Global business with superior technology and long term experience entering into the market and boosting sales leaving narrow market space for the domestic firms to fight for survival. The firms are not being able to survive in the domestic market let alone expand their business into foreign market. But if the policy makers could establish a good business environment and provide adequate support to the domestic firms they could use the advantage of home field and attract the niche markets in the globe using the competitive advantages. To achieve the full advantages of global economy Bangladesh has to improve technical know-how and provide adequate knowledge to the people running business. We need to have change in our education systems so that we will be able to create some knowledgeable business people. Loan can be provided to the entrepreneurs at low interest rates.
References:
[01].
Bangla (2000). The largest portal of Bangladesh. Retrieved from http://www.bangla2000.com/bangladesh/economy.shtm
[02]
Official website of Shahjalal Bank Securities limited. (2012). Retrieved from http://www.shahjalalbanksecurities.com.bd/economy.php
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